VLADIVOSTOK, Russia, Sept 5 (Reuters) - Russian

President Vladimir Putin said on Friday that the planned new

Power of Siberia 2 gas pipeline to China was a "mutually

beneficial project" and the price of the gas would be based on a

market formula similar to the one for Russian supplies to

Europe.

Russia and China signed a binding memorandum to build the

pipeline during Putin's visit to China this week, but Russian

energy company Gazprom said pricing was yet to be agreed.